A country like the U.S., which is operating at the technological frontier, can improve its technology only by:

The consumption function is a function showing the relationship between consumption and

A) disposable income. B) exports. C) interest rates. D) investment.

Economists need different models of the economy because:

A. The economy behaves differently depending on how much time has passed after a demand shock B. We need a different model to analyze a positive demand shock than we need to analyze a negative demand shock C. The way economic performance is measured of changes over time D. Prices tend to be less flexible over time